Clover Health Investments (NASDAQ:CLOV) Issues Quarterly Earnings Results

Clover Health Investments (NASDAQ:CLOV) posted its quarterly earnings results on Wednesday. The company reported $0.03 earnings per share (EPS) for the quarter, beating the consensus estimate of ($0.01) by $0.04, FiscalAI reports. Clover Health Investments had a negative net margin of 0.74% and a negative return on equity of 4.20%. The company had revenue of $759.30 million for the quarter, compared to analyst estimates of $740.07 million.

Here are the key takeaways from Clover Health Investments’ conference call:

• Clover reported strong year-to-date growth: average Medicare Advantage membership rose 49%, revenue increased 57%, and adjusted EBITDA more than doubled to $97 million. Management expects its first full year of GAAP net income profitability in 2026 and raised the low end of its full-year guidance ranges.
• The flagship PPO earned five Stars for payment year 2028, while the HMO earned 4.5 Stars; all members are in plans rated at least 4.5 Stars. Management also cited three consecutive years ranking first among comparable PPO plans on core HEDIS measures.
• Medical cost trends were mixed but generally in line with expectations: inpatient utilization remained favorable and Part D costs performed better than anticipated, while outpatient utilization was elevated year over year. Management said its 2025 and 2026 cohorts are developing as projected, with Clover Assistant coverage tracking ahead of last year.
• Management sees potential for meaningful earnings expansion in 2027 and further opportunity in 2028, driven by maturing member cohorts and operating leverage. It cited historical gross-profit-per-member improvements as cohorts age, but did not provide formal 2027 or 2028 guidance.
• Management expects the usual fourth-quarter seasonal decline in gross profit and a seasonal adjusted EBITDA loss as planned AEP spending rises. It also acknowledged that new-member growth can weigh on near-term earnings as members enter the care model, and did not quantify how much potential 2027 gains may be reinvested.

Clover Health Investments Stock Up 9.3%

NASDAQ:CLOV traded up $0.40 on Wednesday, reaching $4.69. 7,249,618 shares of the stock traded hands, compared to its average volume of 4,291,385. Clover Health Investments has a 12 month low of $1.58 and a 12 month high of $5.59. The company’s fifty day simple moving average is $4.51 and its 200 day simple moving average is $3.56.

Analyst Ratings Changes

CLOV has been the subject of several analyst reports. Weiss Ratings restated a “sell (d-)” rating on shares of Clover Health Investments in a research report on Monday, September 21st. UBS Group upped their target price on Clover Health Investments from $4.75 to $5.00 and gave the stock a “neutral” rating in a report on Thursday, August 6th. Wall Street Zen lowered shares of Clover Health Investments from a “strong-buy” rating to a “buy” rating in a research note on Sunday, August 16th. Zacks Research raised shares of Clover Health Investments to a “hold” rating in a research report on Monday, September 14th. Finally, Needham & Company LLC started coverage on shares of Clover Health Investments in a research note on Wednesday, October 28th. They set a “buy” rating and a $6.00 price objective on the stock. Three investment analysts have rated the stock with a Buy rating, three have given a Hold rating and one has assigned a Sell rating to the company. Based on data from MarketBeat.com, the company has a consensus rating of “Hold” and an average target price of $5.00.

Insider Activity

In other news, insider Karen Soares sold 19,275 shares of the company’s stock in a transaction on Tuesday, October 20th. The stock was sold at an average price of $4.66, for a total transaction of $89,821.50. Following the transaction, the insider directly owned 1,573,423 shares of the company’s stock, valued at $7,332,151.18. This represents a 1.21% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is available through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CEO Andrew Toy sold 62,176 shares of the company’s stock in a transaction dated Thursday, October 15th. The shares were sold at an average price of $4.68, for a total transaction of $290,983.68. Following the transaction, the chief executive officer owned 9,078,334 shares in the company, valued at $42,486,603.12. This represents a 0.68% decrease in their position. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. The sale was made to cover tax withholding obligations related to the vesting of equity awards. In the last ninety days, insiders have sold 856,371 shares of company stock worth $3,870,740. Corporate insiders own 23.51% of the company’s stock.

About Clover Health Investments

Clover Health Investments, Corp. is a health insurance technology company focused on providing Medicare Advantage plans to eligible seniors in the United States. Its plans combine hospital, medical and prescription drug coverage with additional benefits that may vary by plan and location.

The company uses its Clover Assistant technology platform to provide physicians with data-driven insights intended to support clinical decision-making and care coordination. The platform aggregates member health information and helps participating providers identify care opportunities, manage chronic conditions and engage with patients.

Clover Health was founded in 2012 and became a publicly traded company in 2021 through a merger with a special purpose acquisition company.